There have been many Entrepreneurs, Small businesses, and innovative companies, in Nigeria today, which their emergent starts with optimistic prospect and delighting extrapolation. But little at the long run of the journey collapsed at the middle of the road as a result of what i called unconscious facilitation of ignorant both in necessities to build a long lasting business, the strategic knowledge to bridge failure over success, the illiteracy in inputting advancement of technology in every businesses, and the consciousness of intriguing or militating government policies.
The failure of indigenous Entrepreneur however be the bridge that led Nigeria into ephemeral economy and unimaginably breakthrough her into long lasting stagnant pool of poverty, where all creativities and good innovations were crafted back in isolation by our own myopic understanding of true entrepreneurship.
Thus, as you will continue to follow the rhythm of article, it therefore necessary to picturesque the basis of the latter paragraphs, furthermore, the article will focus on the spiral epilepsy over entrepreneurship in Nigeria; the problem; the cause; and the solution to the growth of great Nigeria.
HISTORICAL BACKGROUND OF ENTREPRENEUR
Entrepreneurship started when people produced more than they needed and because of that, they had to exchange these surpluses with others who had surpluses too. Later these producers realized that they could concentrate on the production of more (specialization) and exchange with what they needed, the study of entrepreneurship dates back to the late 17th and early 18th century by Richard Cantillon and Adam Smith, which has made a modern study of entrepreneurship a disciple of the management. According to Joseph Schumpeter in the 20th century as well as other economists like Carl Menger, Ludwig Von Mises and Friedrich Von Hayek, the term ‘Entrepreneurship’ was coined around the 1920s and the word itself borrowed from French. To J. Schumpeter, entrepreneurship resulted in new industries, creating new combinations of currently existing inputs.
Dating back to medieval Germany, craftsman required a special license or permission to operate as an entrepreneur as proof or evidence of his competence which restricted the training of apprentices to the craftsman who held a certificate. In 1935 and 1953, a greater proof of competence was reintroduced and required that the craftsman obtain a Meister certificate to train apprentices and before being allowed to set up a new business. Historically, Nigerians were engaged in entrepreneurship, but it was a more family affair whereby the services of relatives like brothers, in- laws etc were highly utilized. Perhaps, like their European counterparts in Nigeria it started with craftsmanship and was mainly a family and community affair whereby a whole community/village specialized in a particular craft. This was prominent and well known especially in the Northern and Western regions of the country with craftsmanship in pottery, wood carving, tannery, cloth weaving, jewelry making, to mention a few. These were traded for other items and transported to within and outside their regions.
With the eventual coming of the Arabs and later Europeans came a new type of trade and a generation of middlemen that bought from the craftsmen and sold to the consumers. Modern education also created a new elite group of entrepreneurship that dealt with trade in imported goods like machinery and automobile spare parts, textiles, etc. Often early modern entrepreneurs started out with a small capital usually gotten from their own savings and were engaged in retail or sole proprietorship. But entrepreneurship is becoming increasingly important in the development of many countries’ economy. It is also a critical factor in the creation and implementation of growth and improvement strategies in other relevant development sectors. It is therefore under stable that country now prioritize the development policies aimed at encouraging entrepreneurship. – Drucker (1999)
According to Schumpeter (1934) prior to this, major literary work did not differentiate them from other participators in the sector like Capitalists, managers, family owned businesses, etc. He described entrepreneurs as an individual whose function was to carry out new combinations of the means of production. Vesper (1980) identified that a significant proportion of the value of that of the entrepreneur contributes to a system resolves around innovation. They are involved with the introduction of products to the market as well as inventing new methods of production. Pyrex Journal (2016)
DETERMINANT OF ENTREPRENEURSHIP
Generally, in the world it is believe that the root of every good economy lies in within the healthy businesses indulge in. No country today in the world can survive without entrepreneurs, and certainly this is however where the epileptic problem of Nigeria economy lies. Because 60 percent of the inventor out of 100 in differ businesses lack good skills and stamina to stay in their respective businesses. Their lack however is enumerated below, aside from the problem facing the businesses, these are actually the internal problem that every prospective or ‘would be’ or ‘already in’ investor to battle on.
- Experience in chosen trade
- Poor exposure to technological advancement
Creativity is said to be mother of invention. To be an entrepreneur, one has to have an invaluable idea to sell, new ideas and creative to attract more of the public to crave for speculated product or services. The entrepreneurial activities in Nigeria are mainly intermediaries with entrepreneurship in the actual production of goods and services mostly in the hands of expatriates. However, Nigerians lacking behind in entrepreneurship, though, not for shallow ideas, and creativity, but for lack of support from the government. The fullness will be discuss “in problem facing Nigeria economy, subsequently”
Experience in choosing trade
Experience is not always the best teacher – evaluated experience is! Many entrepreneurs have had to close up their businesses due to lack of experience and critiques of evaluation. An entrepreneur has to have experience in the trade of choice before venturing into it. He has to be aware of the cons and pros of his business. He needs to recognize whom he can rely on if he wants his business to continue and expand. Above all he needs to define his customers
Though, money is the root of evil but at the same times it is this money that kick-start the engine of every successful living. To start a business, an entrepreneur needs funds to be able to start the business and to keep it afloat. He needs to have a financial analysis of his trade, how much he needs to put in, how much is coming in, how much of the profit needs to be put back into the business, how much to keep as profit etc. Most entrepreneurs in Nigeria start with very little funds and this makes expansion difficult.
Education isn’t always the best legacy, for youths and every prospective entrepreneurs, it is a necessities that requires day to day indulgence. Although many say that it is synonymous to experience as experience is the best educator. Presently, literacy is very important in entrepreneurship. Having sound basic secondary and tertiary education is as important as learning the basics of trade.
Poor Exposure to Technological Advancement
So far in the world today, things has become easily done all thanks to the nano and flexible manner of technology invented. One can buy any goods online and trade with ease. Aside from buying goods online which advance in technology gave the access, there are so many newly implemented industrial engines to ease the labourers in the field and make their work faster than before. Perhaps, this enlightenment happens to disappear in the faculty of most entrepreneurs and this also help in paralyzing the growth of economy in Nigeria.
PROBLEMS FACING ENTREPRENEURS IN NIGERIA
- Government policies
- Poor infrastructure facilities
- Many entrepreneurs lack managerial skills to help in planning and organizing their enterprises.
- Inability to recruit and retain good employees
- Inadequate access to market information
In this regard it would be noted that though all above and many more were among the problem demarcating the progress of Nigeria economy, but three out of all are major, namely; inadequate access to market information, Government policies and Poor infrastructural facilities, and these shall be the basis of discussion in the subsequent paragraphs.
Inadequate access to market information
Osemeke (2012) one of the greatest problems is lack of information base, and this makes researching ideas difficult and cumbersome. Consequently, majority of entrepreneurial activities in Nigeria are based mostly on intuition and hope, rather than moved by research results of market needs (Oshionya, 2008). In addition Mambula (2002) states that the key problem facing entrepreneurs in Nigeria is lack of finance in new or an already existing business. In his view Banks especially commercial banks which are expected to launch platform for financing development of entrepreneurship or small and medium scale industries has failed to support the entrepreneurs adequately. He also wrote that the stiff Collateral security demanded by the bank often means entrepreneurs loses the chances of obtaining the loans because they are unable to meet up the demand by the bank which worth more than the amount they want to borrow from
the bank. He added that high interest rate charges on loans by banks scares off potential small and medium scale entrepreneurs.
A serious challenge that entrepreneurs face in Nigeria is the level of competition from foreign producers. The local entrepreneurs are not protected, the situation is worsened by the apparent lack of faith in the Nigerian Patent Law which many entrepreneurs feel offers them little protection against piracy. Another strata of government also is the problem of extortion demanding from the most government officials. So far in Nigeria, entrepreneurs give complaint that Nigeria government holders are demanding unlawfully from them as a result of to maintain their staying in the business. This happen mostly to MTN, GoTV and other foreign and indigenous entrepreneurs.
Poor infrastructure facilities
This is because of bad roads, water shortage, and inadequate water supply is some of the issues plaguing the private sector and their businesses. Entrepreneurs in Nigeria give many complaints that in moving of logistics road has been major catastrophic in contexts. Likewise inadequate water supply and electricity unstablen
However, Nigeria and her entrepreneurs so far has been majorly problematic for eachother. They are the twins which are Ununited. They are like the left and right legs, which supposedly are not in harmony to work down a path. Point driving, Government has been torn on the flesh of the entrepreneurs lawfully and unlawfully. The extortion and the lack of interest in the indigeous products relegate the potentials of entrepreneurs and certainly will fall at the long run of the business. Sadly enough that after entrepreneur in Nigeria has scale through the problem and difficulties which could probably collide with him in his way of business, he still need to plan along the bribe or brown envelop to give the government for his success.
They now became twins which are glued but yet in their respective thought Ununited and certainly which to go along their path, forgetting that though they are of different upper shape of man, down the lower shape of man, they have only one leg, which equivalent to two, to work down the path. Except they agreed, no progress can further be expected than destruction and calamitous ends.
Entrepreneurs and prospective Entrepreneurs should in all ways adhere to the internal warfare which might barricades their progress in the choosen business and also government should provide the necessities that will boost the potentials of entrepreneurs to establish their creativity for the success of the nation.
Government should implement a strong and able platform that could perhaps twice or thrice in a year communicate the realness stamina to sustain staying in business and also the goodness or the benefit of being an entrepreneur to their country and to them so to gear the potentials in them and fuel the existing volcanoes in them.
Government and entrepreneurs in all things should however remember that, united they stand and proliferate – divided they fall.